Name: Nicolas, Emmanuel R.

Date: 02/29/2024
Section: BSBA 3A Instructor: Prof. Manilyn Militar

Although there have been a dramatic increase in self-publishing the past years, it doesn’t
seem to bring sales. And despite the increased number of authors, very few are able to generate
book sales. These statements suggest that the entry barrier for the book publishing industry is
slightly high. It is possible for new competitors to entry, but they will find it difficult to sustain
their presence. That means that the threat of new entrants for the book publishing industry is
low.1
When it comes to the bargaining power of buyers, it is probably safe to assume that it is
low to none. There are no information regarding this aspect, but people who buy books typically
don’t complain about a book’s price. As for the bargaining power of the suppliers, I would say
that it is high. It is stated that only a small number of “brand” authors attract book sales. Authors
are basically the supplier to the book publishing industry. And if these authors demand to
increase the price for their books, the publishers have no say about it.1
Regarding the threats of new substitute, the information stated that book sales are
expected to decline as internet and cable usage increases. This means that the threat of new
substitutes for the book publishing industry is high. Lastly, country A leads the industry in terms
of magazine sales, but there are other genres of books that have a lot of opportunity. So I don’t
think that competitive rivalry limits the book publishing industry’s profitability.1
It was smart to use the internet by creating e-books. With that, the industry will reach
more target market. It will also help with the high threat of new substitutes albeit slightly. 2
For long-established publishers, the book publishing industry is their golden egg. Since
they have been in the industry for a long time, their foundation is pretty much solid. For up-and-
coming publishers, it will be hard to break through the entry barrier. I don’t think the book
publishing industry is attractive. It will cost a lot of resources breaking through the entry barrier
and it has a high threat of new substitutes.3
Porter’s five forces model can be used in the analysis of any existing industry. So it is
better paired with other tools of analysis like the SWOT analysis in order to create a better
marketing strategy. But I don’t think that Porter’s model can’t be used for creating a new market
out of nothing. And if it can be used, I think it has some limitations.4
1. Assess the book publishing industry using Porter’s five forces model.
2. What key insights have you gained by assessing the industry using this structured
model?
3. Therefore, what is your overall assessment of the attractiveness of the industry?
4. How could a firm use Porter’s five forces model in their strategy and planning
activities?